Omnicom Group and Interpublic Group, two of the largest U.S. advertising business agencies, are planning a $30 billion merger to better compete with Paris-based Publicis Groupe and British multinational WPP — saving a combined $750 million in costs.
Omnicon’s all-stock acquisition of Interpublic will close in mid-2025, creating the world’s largest ad agency, with annual revenue of $20 billion.
The merger will also highlight the agencies’ switch from creative-based enterprises to data-driven entities and AI-dependency. It is expected that AI tools will eliminate some 32,000 jobs at various ad agencies by 2030.
With AI “creatives are moving further down the totem pole,” Cheryl Berman, a former CEO of Leo Burnett ad agency, is quoted as saying by The Wall Street Journal.
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